phone with a fingerprint sensor. dennis writes, i envision a market with four-fingered gloves. one is from quantum croan graph, they would use it to clone a rich version of me that could afford to buy their products. let's get back to headquarters. scott wapner, a busy afternoon and "the halftime." yeah, thank you so much. welcome to the "halftime" show. four hours until the close. we're backing up yesterday's good move with another good one. the dow up. the s&p, nasdaq higher as well. here's what we're following on "the half." the apple trade, one hour before the big unveil, an analyst weighs on whether you should sell the news. target shares. the bull's-eye checking out shares. is there any reason to check in? one trader says yes, the other says no. the new dow, goldman, visa, nike

are in. hp, alcoa, bank of america are out. it's the biggest shake-up for the industrial average in nine years. so we're trading all of the names with mike murphy, joe terranova, and steve weiss. joe, what are the trades as a result? >> i think, first of all, if you're intel, ge, you have to be concerned now. because you have the bottom three in terms of pricing in the dow that have gone bye-bye. listen, the s&p is a market cap weighted index. the dow, obviously, is price-weighted. that's exactly what's going on here. the editors over at the wa"wall street journal" did an excellent job of filling the void between chevron, which prices about $120 and ibm at 185, and now insert goldman sachs and visa, and you have two equity names that move right to the top of the dow and provide exactly what the dow's looking for. performance for the indexes to chase. >> you think it's a great move. >> i think it's great move, but

purely based on price. price alone. that's why they did it. >> it's a price-weighted index. steve weiss? >> well, first of all, congratulations, dow jones, 20 years later, and real vising alcoa is not relevant. and 10 years late with hewlett-packard. i applaud the names -- >> although, relevance is relative. the stock has been the best performer, okay? so from an investment standpoint, if you've been hewlett-packard, you've been hear. by the way, bank of america -- >> for now. not over the last 10 years. >> the last 12 months. >> gotcha. >> so they're trying to go more growth. they're trying to take some of the -- the growth factors from nasdaq. if you overlay a chart of goldman sachs with the nasdaq over virtually any period of time, you'll see there's very little divergence between the two. so the reason for that is that goldman, as the economy improves, as markets improve, goldman prints more deals, more m&a, more issuance. so i think that's actually a good thing. but for me, i really ignore the dow. i look at the s&p, because it's

a broader index. that's most people's benchmark. i'm hard-pressed to think of anybody except for the newspapers that investors are looking at dow jones -- >> are we buying and selling the names based on whether they've been added or subtracted? >> no, we're not. we're not. to let the administrators that run the dow jones dictate what anybody does in their portfolio, i think is ludicrous. >> if you're looking for a key for a trade, there has -- the history will show a lot of names, looking at an alcoa, a lot of names kicked out for massive underperformance, as alcoa has, have gone on to have a good 12, 24 months after the fact. they're not moving today. i think overall this move, really similar to what these two guys are saying, the move focuses on growth for this country. so i think it makes the dow jones a little more relevant than it has been. >> chris, real quick, let me give you a trade. goldman sachs, long for a while. am i getting out on this? no, i'm staying with it.

i don't think people will say you sell this type of event. >> what do you do, visa, mastercard? two stocks that -- >> look, i like mastercard. i like mastercard. i get you can't put mastercard at $650 into the dow, because it would be too price dominant. i understand you go with visa there. but i like mastercard over visa. and i still think mastercard you get 5700 print. >> i'd be hard-pressed to think, in terms of when a stock was kicked out of the dow, didn't really crash and burn that day. didn't underperform dramatically. you can say some are up, and alcoa is basically flat. it shows to me that the market's wise to these games, number one. and number two, there hasn't been that much money going to the dow indices as historically there had been prior. >> dr. j, what are you trading as a result of this? >> well, judge, first of all, it's a recognition and it's their attempt to stay relevant, of course. it's a recognition of the fact that it's not just investors that have changed their timeframe from long term to

shorter term, because, obviously, these guys, that's their attempt here, to be more relevant. and i'd say, judge, even though, of course, these double and triple-levered etfs, they reset every day, we know that, we talk about it, i won't belabor the point, that's where you will start seeing some real either alpha, if you will, because the price movements since these are price-weighted, this is going to be more dramatic because of these additions, especially given that the stocks that left had an average price of, what, 15 bucks a share? and these are basically triple-digit stocks. that will be much more interesting for the double and triple-levered dow jones etfs. >> what about the names that joe mentioned, who could be next? intel. ge. >> intel. i'd be concerned. listen, you're in a business that overall we believe is being cannibalized by tablets. ge is obviously, i think, okay, and i think they're okay just because of their desire right

now to get into the energy space through the acquisitions that it made with luf kin. but intel, i could see it coming out. >> i'll agree with that. kraft foods was in the dow for a total of four years, so intel relatively new. they could be kicked out if -- >> the big question is how do the additions and subtractions to the dow attend to performance. dominic chu is here with those numbers. >> scott, let's talk about -- if you look at the dow's makeover, as things currently stand, the three most heavily weighted stocks -- ibm, chevron, 3m -- and that sounds pretty industrial. technology, energy, diversed managing, and the addition of visa, goldman sachs, nike, will have a permanent feel. visa and goldman will immediately go into the top three. it will be ibm. it will then be visa. and then it will be, again, what's going on with goldman sachs. so what happens to these stocks after they're part of the dow -- we went back and looked at all of the notable additions over

the last ten years. what we did do is exclude stocks that went in or out around the financial crisis. we don't want to look at those. look at united healthcare. it went to the dow last september. a year later, it's up 33%. go back to 2004. aig, pfizer, verizon, all went in the dow that year, and a year later, finished a little bit lower. so overall, you can't tell whether or not a stock is going to go up or down just based upon index inclusion, but it is notable to see that this composition changes the feel of the dow. >> it does, right? probably more than anything for an investor. >> well, it also goes to -- if you look at the three companies, really, even goldman, consumer company. and they went -- they took out b of a, cheap stock, low-priced, gold is much more exciting stock. what they're going for, i believe, is excitement and growth and make themselves relevant. >> it's interesting, guys, s&p dow jones indices said they did it because of the low prices, and also to diversify the look

of it. they say jpmorgan and goldman are similar. goldman sachs is focused specifically on investment banking. >> it's interesting, because if you pick 30 stocks, and i think goldman's a great company and it's a good stock, but if you pick 30 stocks that are representative of the economy, right, and just the industry overall, would you pick an investment banking company? you can argue, yes, because to the extent banking moves, right, that's going to be a function of the economy getting better. in terms of a narrow, narrow segment of the market, you have a handful of markets that play there. >> you say goldman sacks is an exciting company. it is. if i'm looking for a 20% return, i'd look at bank of america before i'd look at goldman/sachs. >> i don't think dow jones is ever focused on return. >> no, saying to you, goldman/sachs is exciting and a big company. we can agree on that. from a return standpoint, i'd rather invest today in bank of america than goldman/sachs. >> but, guys, when a stock gets kicked out of the index, does that oftentimes signal a low?

i mean, is this the low point? is that the reason why b of a is -- >> -- for alcoa, that's one of the questions being asked toe. does that mark the low for alcoa? >> well, i think of all the three names that have been removed, bank of america is the most appealing to me. and the reason being is just relative to where it was five, six years ago, and seeing the return to normalized earnings. that's a name i would look at. if you own it, and you have the action today, i wouldn't necessarily take that and liquidate. >> doc, talk to me about the nike inclusion. we haven't mentioned that stock. we've been talking about it the last couple of days relative to under armor, which one you would rather own. what is the nike inclusion mean? >> clearly, judge, just as pepsi would be, this is a play on what's going on in the asian market in a big way. i really like them, versus under armor, yes, i still like them. and i understand that mr. plank has done a great job over there, the ceo and founder of under

armor. but i like what knight's done with nike, and i think given the football season that's just kicked off here, no pun intended -- >> don't remind me. >> -- i know, you were watching rg iii and sweating blood last night. but it was a great move by nike when they really got into college football in such a big way, through oregon, and i think it continues to pay off for them throughout this season. >> yeah. we should note, also, kevin flank, the ceo of under armor, will be on with jim tonight on "mad money." that's always entertaining. you'll want to see those guys kick it around a bit. that's tonight at 6:00 on "mad money." dom, thanks. >> no problem. always a pleasure. so what do the changes to the dow mean for the retail investor? charles schwab, overseas, $2 trillion in client assets, sand liz here. nice to see you. welcome to the halftime show. >> thank you, scott. >> let's get your take on the dow moves and then broader markets after that. >> as i think it was john who mentioned the three stocks getting the boot had an average

price of 15. the three stocks coming in have an average price of about $135. so there's two impacts it has. leaving aside the fact that it is probably more reflective of the economy, it's got a level of excitement to the index. but it means a level of volatility of the index probably goes down a little bit, and it also means a dollar move in any of the 30 components has a little bit less an impact on the index overall. that's not a big needle mover but something worth noting. >> let's talk market overall. how do you feel where we are right now, you know, amid questions coming in to september that we were going to have more of a correction that we saw in august, now we're wondering if that's even going to materialize, if we're in for an upside surprise this month. >> well, i got a little bit cautious in the beginning of august, not that we try to time every little wiggle in the market. but mostly due to technical conditions having deteriorated, the market had gotten overbought. most of the short-term sentiment measures had suggested a level of froth that i think put on the table a pit of a bullpack.

we got 4.6%. we had a couple of days of rally. i would like to see the sentiment conditions pull back even more. we didn't see that. it suggests to me we could have more choppiness. we have the obvious issues of seasonality on top of which we have the fed meeting, although i think much of the weakness associated with tapering is already in the market. but syria is the big short-term wild card, the debt ceiling debate, the second round of sequestration. we have the implementation of the affordable care act. so not trying to be too cute tactically, but in the near term, you may still want to keep your cards close to the vest. but i certainly wouldn't fold them. >> liz ann, it's joe. we've had recently the laggards of 2013. i'll mention four of them. the emerging markets. europe. apple. and the materials space, which now are outperforming overall. are any of those four officially really back where you can view the outperformance as sustainable over the coming months? >> well, let me talk particularly about emerging

markets. in fact, we just had a conversation about this among my strategy group. we had an underperform on emerging markets and still think that's probably the play longer term. but you've got to evaluation discount. you got two extremes of sentiment, a bit of the opposite of what you saw for the u.s. market. you've gotten to the inflection point where pmis have turned and it's not just emerging markets, it's in europe, too. and that at least sets the stage for maybe a valuation-based or sentiment-based rally. the problem of what's plaguing emerging markets isn't just cyclical. i think the opportunity for a rally is there. i wouldn't bet that that's the beginning of a renewed longer up trend. >> i wonder if the rally happens. i'm looking at a stat today that the eem is seeing the longest winning streak in 9 1/2 years. it's up 8.3% this month alone after getting battered on talk of the taper and other issues. >> look, i think, again, the

secular problems are not going away anytime soon. we've got the turn in the economy. but the secular problems, everything from debt levels to current account deficits, credit growth, inflation problems that put central banks in a different position than a lot of the developed world, suggests we may have a problem. you're going to get fierce, fierce rallies. we always remind people that in a secular bull market, you can still have some unbelievably fierce cyclical downturns. and even if we're in a secular bear market, you can have some really, really fierce, cyclical bull markets. you have to be fairly nimble if you're more trading oriented. and again, we just think what's happening in the emerging markets may be more short term in nature. certainly possibly playable for the more trading oriented but maybe not longlasting. >> liz ann, thank you so much for coming on. >> thanks. >> liz ann saunders for us. coming up on "the half," the day has arrived. will apple deliver the goods in today's event?

we'll look at shares. we've seen this before. shares are selling off on the day that apple introduces new products. they haven't done it yet. that's coming in the 1:00 eastern time hour. shares are at 502, down about three-quarters of 1%. we'll give you a preview of what to expect, what not to expect, and what it means for the stock. to $300 and beyond? netflix shares touching an all-time high. the doc will give you the playbook for this momentum stock when we come back. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open ccount.

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all right. welcome back to the "halftime" show. let's get to the other big story. apple's highly anticipated product announcement. less than an hour away now from the big event. our jon fortt is there live with the very latest on what we should expect. jon? >> reporter: well, of course, the iphones are the first big thing. the 5c will get the most attention, because it's new. we're going to get five colors. the question is, the price point. will it be at 550, which is high? will it be at 450, which is getting around the level of the lower-end iphone? and will they keep the 4s around? of course, the 5s, which we expect to see, also going to garner a lot of attention to see what kinds of new features apple pops in with the s update, an updated camera, perhaps a better

screen, faster chip, better battery life. in this case, we might see a fingerprint sensor for a different method of secure log-in. of course, there are a couple of macs that are also long in the tooth. macbook pro could get an update. we know to expect a new macpro at some point toward the endest year. but the mac doesn't contribute that much revenue-wise to apple, compared to the iphone and the ipad anymore. one particular interesting area, i think, will be services. itunes radio, very important, because of it's a really compelling addition based on the details they announced today. it could be bad for pandora, but also good for apple in the sense that even if you get a lower-margin iphone coming out, if they get another service to attach people to, that brings in revenue longer term, that could be better for margins, also, guys. >> we'll see what happens in about 40 minutes. look forward to it. thank you so much, jon fortt. let's bring in steve, the tech hardware analyst at ubs, and one of the institutional investors hall of fame researchers. welcome back, steve.

>> thank you. >> august 21st, you raised your price target to $560 from 500. we're sitting basically at 500. are the new iphones that jon just mentioned that are likely to be unveiled today going to move that needle? >> i think they could. i think the big question is, coming out of this, what happens to the earnings estimates? this is the first raise we've done in a year. and i think some of the big factors are going to be obviously the 5s, pretty much expected, but will it have fingerprint authentication for the 5c, the lower-end phone, what's the price point, and, therefore, the margin, and how it will be distributed. finally, is apple signing up more carriers, specifically china mobile and dokimo. the reason we raised our estimate is we think china mobile will come on and could add $3 in earnings. >> steve, it's joe. this time last year, it was supply disruptions that cost me, specifically, and other people a significant amount of money. will we hear that again this time around? >> hopefully, not. there are still questions around, for example, the

fingerprint authentication over the sensor, whether that's being built in significant numbers, if there's some problems. there are still supply-chain questions. as apple gets bigger, they need to ramp up even faster. i doubt they'll say a lot about that today. i expect that the phone will be available within a couple of weeks. but that is something to watch. >> you think we're going to get the china mobile phone overnight into tomorrow? >> yeah. it's not clear, if it does happen, if they might announce it now, or perhaps wait until the actual china event, which is 10:00 a.m. china time tomorrow morning. they're also doing something in japan. so we think there's a possibility of dokimo. and while it's not as high profile as china mobile, it could be as important. it's more mature environment. apple is already a big brand there. one or the other could be significant for the stock. >> what is the icon factor mean at this point in terms of dollar, premium in the stock? >> i don't think it means too much. the company has already announced a large repurchase. icahn my lobby for a larger one.

that's a possibility. i don't think apple will be too focused. i don't think he will change their behavior in the short term. it comes down to the products today and next year, as well, because tim cook has alluded to innovation and new product categories. that will be very important in '14. >> all right, steve, thank you so much. >> thank you. >> we'll talk to you hopefully on the other side. guys. >> here's the way i look at it. i bought some calls today. not a lot. already actually sold half of them. i think it's going to be another yarn in terms of the stock price. >> a sell on the news event? >> no, a yawn. which means we've already seen this sell on no news event going into it. there's not a lot of expectation. >> that's not much of a sell on the news. we're down .75%. >>s there's no expectation. the stock's really done nothing. it's had a big bounce since 400, i understand that. but in terms of new product, it really hasn't done anything. in prior cycles where we've seen the sell on the news, the stock

was moving up. now, it's basically hanging out with the market. so i think you could see that the expectations are so low that people will come in and start buying it -- >> and how about this? apple has outperformed the s&p 50091% of the time by an average of 4.3% in the one month leading up to a product introduction. in the three months following a product, apple's lagged the market 73% of the time by an average of 2.1%. >> i think looking back, it focuses more on the days when a new apple product would get the stock running up 100 points, 150 points, and that's where the sell-off would come in. i'm glad to see steven weiss was at home watching our program yesterday when he made the exact same point that, you know, the stock hasn't had a run-up here. so i think your risk here in today's news is that apple could -- something positive comes out, the stock corrally. i don't think there's much downside. >> doc, what could possibly cause this stock to pop today? i mean, they have to pull a

rabbit out of the hat along with some iphones, right? >> well, the price point that steven alluded to just moments ago, judge, and the ntt dokimo, even though that's likely to be tomorrow, it's a higher end buyer. that would be a big revenue boost. >> i didn't know murph was on yesterday. i'm sorry, i must have missed that. >> i was thinking, they should do a 4-for-1 split. >> maybe google. >> priceline. gold and other pressal metals -- precious metals are taking a hit. we'll head to the futures pits. who's looking to buy jpmorgan's lucrative commodities business? kate kelly joins us with who the potential bidders could be when we come back.

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welcome back to the "halftime report." we have the "market flash." one big red spot on everybody's screen, oil. investors really pushing the sell button after the syria situation seems to be simmering down. take a look at brent, down 2% to about 111 a barrel. wti down nearly 2.5% to 106. basically, erasing all of the big gains we saw last week. obviously, the spread between the two now collapsing as well. energy stocks are also feeling the pain. the energy index, the only sector in the red. chevron, exxon, also marathon oil, amongst some of the biggest losers. scott? >> sheila, thank you so much. gold and silver dropping hard today as a u.s. strike on syria appears less and less likely. let's get more from futures host jockey deangelis. >> hey, good afternoon, scott. it appears the u.s. would like to pursue a solution that would avert a military strike. that would be a diplomatic solution, and in response, we're watching gold and silver prices, they are falling hard.

jim, if the u.s. doesn't strike syria, have investors lost a big short-term reason to own gold right now? >> i don't think so. i think the move we're seeing today is pretty much taking the syria strike or any serious syria strike off the table. you and i said this before, when you're a macro trader, you have to look at the political winds as they blow. i have never believed a president that ran on a peace campaign would be the only guy that wanted to bomb syria. i think there are plenty of reasons for gold to rally despite syria, and in a couple of weeks, it will be forgotten. >> all right, jeff, if the syria situation fades away from the headlines, what do you think the big drivers for gold and silver will be? >> well, jackie, i don't know if the syria situation will fade away. 99% of the time i like to disagree. at this point in time, i will disagree with him again. we are actually seeing a reason to own gold. as we see equities here at all-time highs, the nasdaq futures, all-time highs, there's a reason to own gold as a safe haven. the sentiment has changed. 1,357.

we stayed above that. so mentally, we stay above 1,350, we should see gold go higher. in the event, equities do roll off, because there are things going on in september, if we get traction on one of the headwinds, you will see gold go back above 1,400. >> all right. they still think gold is a safe haven trade. in the meantime, we'll talk more about syria on the live shot, online. we'll be joined by top bank of america technician macnil curry. 1:00 p.m. eastern. scott? >> jackie, thank you so much. with bank commodity units under scrutiny, jpmorgan is selling its physical assets and there may be more to the deal than many people realize. our kate kelly has more on that subject, doing some digging, as always. >> you know, i like today. >> yes, you do. that's why we love having you on the show. >> the term sheets are not even completed but the bank has already talked to more than 50 potential suitors from what i'm told as part of a planned sell

of its physical commodities unit. allowanced late in july as an attempt to devest itself of core assets and rid itself of regulatory overhang. the bank whose physical commodities unit, somewhere between $2 billion and $3 billion is hoping to at least agree to a deal, it if not be able to finalize it by the end of the year. one notable asset that could go along, is jpmorgan's commodities chief, blithe masters. masters, 44, is under fire for her role of several years of regional power deals that energy regulators say constituted market manipulation. she has argued privately that the behavior was not manipulative and they reached a settlement over the issues recently. but now federal prosecutors are investigating. people with knowledge of the initial documents being finalized now and should get to market as early as next week say it could go one of three ways. to an established commodities trader, to an offshore, less

heavily regulated banker, commodities company, like a noble or bank in asia or europe, or finally to a private investor such as a sponsor or sovereign wealth fund. of those three, scott, i think masters is most likely to go with the private investor, because in that case, they may not have the bench in terms of managing the business, they may need someone to run it for them. >> if you go back a few years, not even a few years, just a couple of years, commodities generated significant revenue and earnings for jpmorgan under the radar. some people focus on it. they're selling at a time when the commodity cycle hasn't -- >> really low. >> -- lost tremendous money in cycles. >> right. >> they've been devastated the last three years. it's probably a good time to get out of it. i think the multiple goes up. >> it depends how you look at it. jpmorgan is in the mode of getting rid of noncore assets. they're trying to streamline the business and rid himself of the regulatory issues. at the same time, though, to

sell at the low point of the cycle, i don't know, right? even if you don't believe in the supercycle, a lot of people think we'll see an upturn, that things will stabilize. >> and if it does, your marking to market the asset -- thanks for agreeing with me. >> i thought he was agreeing with me. >> he always agrees with me. you're betting commodities will improve. what if you take the money from the commodity business and allocate it to the core businesses? i would say there's more leverage there. >> no, a fair point. >> right, murph? >> yes. >> thank you. >> well, hopefully, we'll get more clarity on this, scott, with mary thompson and games gorman later today. she may be asking him about their plans for commodities. >> all right. kate, thank you. kate kelly. coming up, the biggest names of pharma are gathering at morgan stanley's healthcare conference. a top analyst will join us with the top picks in the hottest sector of the market. ♪

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welcome back. healthcare is leading the bull market. the sector is the top performer of 2013, up about 27%. and today, the biggest names are gathering at morgan stanley's annual crisis. david risinger tracks the sparks as we said, for morgan stanley. nice to see you. thank you for coming on. >> thanks for having me. >> let's run through some names. what are the top picks right now? >> sure. well, i cover the pharmaceutical area. that includes both the major companies and specialty companies. our top picks for performance are really on the generic side, so that includes myland, an activist. and on the major pharma side, pfizer. >> dr. j, you have a question

for dave? >> well, i mean, david, one of the ones that pops up a lot, other than mylan, is vivus. i've noticed a little more activity in this one leading up to the conference. do you see anything different here or any of the other -- >> well -- well, unfortunately, i don't cover the biotech side of the business. so i tend to focus more on specialty pharma companies with a broader portfolio of drugs beyond just a single product. >> i had a quick question regarding pfizer. i also like pfizer. you hear from a lot of people that they just don't have the pipeline of some of the other competitors out there. i tend to disagree. and i think they can actually buy their way into it if it ends up being the case. could you speak to a pfizer versus a merck? >> yes, absolutely. well, pfizer is one of our overweight rated stocks. the stock trades at a discount

to the market, and we do see upside from here. we're hoping for a couple positive popline catalysts in the first half of next year. the first is on a major new cancer drug, specifically for breast cancer, and that drug will have a read-out in the first half of next year. if it could move from its current evaluation in late-stage breast cancer into earlier stage breast cancer patients, this drug could end up being a $5 billion opportunity for pfizer. so it can definitely move the needle. we're also hoping for their pregnar vaccine which is to prevent the risk of pneumonia to succeed in adults and we should see those trial results in the first half of next year, as well. >> steve weiss, you have a quick one? >> i do. so pharma's been a defensive group. it's done extremely well. don't you think it needs to rest quite a bit now as we move into a growing economy? >> well, that's a great question. it certainly has behaved defensively, and has

outperformed the market. the group has taken a little bit of a pause as interest rates have risen. but what i would emphasize is that, first of all, our strategists at morgan stanley remains overweight healthcare. so adam parker remains bullish on the group overall. and we do think that pipeline news flow can continue to move this group higher over the course of time. >> sir, it's good to have you on the show. thanks for coming on. >> thank you. >> all right, david, be well. again, morgan stanley. guys, what are your top picks in the space? >> this is an unpopular call, but i actually shorted sbi, the biotech etf, i talked to you about that about a month ago. i just see a lot of the outperformance being driven by a beta chase on the part of money managers. you don't need to have the beta chase anymore if we're seeing an acceleration growth. >> i think pfizer is a great name to own, and also amgen,

after the recent deal, a bit of the sell-off could be interesting. >> gilliard. to me, a very, very cheap stock. ten times earnings. tremendous pipeline. it's growing significantly faster than pharma. guess what? it's cheaper based on forward earnings. >> all right, dr. j, give me a pick. >> merck. >> all right. later on cnbc, be sure to check out the exclusive interview with james gorman, "street signs" today, as you see, 2:35 eastern time. the pops and drops, the biggest movers. joe, urban outfitters, a big drop. >> it is. unfortunately, what you're seeing here is the comps coming in midsingle digits. i'm going to wait a couple of days. i'm going to buy this name. i like the strength we're seeing in an throe polg -- anthropology. >> fusion io. >> yeah, it had some chatter, some upgrade, as well as people at conferences talking about fusion. it had a very significant top,

though, about 25%. i think it has a little more room to pull back before it goes higher. >> murph? pbh. >> it actually came out with decent earnings. it was the guidance that got people spooked. it continues to sell off. right now, we're sitting down about 7%. the stock ran up into it, and they just -- the guidance will not support the stock up here at these levels. >> weiss, potash? >> i don't know about potash, but putin is great for these stocks. and belarus, where they have arrested one of the heads of the russian company. what i look is for putin is settle the cartel flare-up and the stocks will skyrocket from there. >> it's been a rough month for target. innext up on the half, with shares down 8%, one of the traders sees major upside ahead, which is why they're going to go outside and just fight. when we come back, it is a classic brawl. it is weiss versus murphy.

>> classic. >> on target. plus, keeping an eye on target. session lows ahead of the big product announcement. stay tuned to cnbc. we're covering all headlines from cupertino starting at 1:00 eastern time. i am today by luck. i put in the hours and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen. so when it comes to my investments, i'm supposed to just hand it over to a broker and back away? that's not gonna happen. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today.

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welcome to the cnbc headquarters. we'll be all over snapple. no, apple. a big event at 1:00 p.m., minutes from now. we're live at apple's headquarters. see how the stock moves, right from the get-go, with this product announcement. a lot of stocks will be moving one way or another based on what happens with apple. a lot tied in to that ecosystem. a big report on cnbc.com getting a lot of attention today. it says housing is already in a bubble. we'll talk about that, beginning at 1:00. meantime, scott, back to you and the fast team. >> all right, thank you so much. we'll look forward to that. shares of target struggling to find momentum recently, but is the beaten-down retailer too cheap to ignore? weiss, make your case. >> yeah, it's too cheap to ignore. street estimates have come down by 10%. that's a major decline. expectations have come down more than 10%, and you are seeing a number of downgrades in reaction to the last quarter.

here's the story. they're growing earnings now, it's been reset to a level they can definitely beat, at 20% this year to next year to the following year. so you've got three-year earnings' growth at 20%. additionally, major expansion opportunities in latin america and in canada. so i think it's a very, very strong retail, priced to discount, historical multiple with a good management team. >> so target's a name we've owned in the past. and one of the main catalysts we own the name was canada. if you look at what they've done in canada, that's a major problem. that turned into a huge upside potential to what's now being a problem for the company. they're not producing up in canada. they're not coming through. so you say that the numbers have come down. they have. but that's because they're not performing. they're fighting this battle on two fronts. they're fighting walmart. they're fighting costco on one side. fighting amazon and the internet on the other side. right now, they're losing the battle, my good friend, as you're about to. so when i -- >> murphy, murphy -- >> -- although it's down 10%.

>> forget about the wide ties and everything else, you're tracking in the past. look forward. not what happened in the last quarter, okay? everything has been reset. expectations and earnings. >> right. >> it's a quality company. canada is actually a great opportunity for them. >> it is. >> to build upon. they're very u.s.-centric. latin america, a great opportunity. would you rather go to walmart, growing at 10%, the same multiple, or target? let me answer that. >> the canada thing is a major misstep. walmart beat them there, and target's not putting up the numbers. that was the issue in the last quarter, was the -- >> thank you very much. the last quarter. not this quarter. >> yeah, well -- now all of a sudden they're ahead of walmart -- >> can we get a look at his footwear? those are from target, i think they're from the "wizard of oz" collection. right there. that's where he's buying his clothes. he's a patriot of target. talk with your feet, which you are. target. >> dr. j, who made the more compelling argument? >> well, i gotta say, i do like the shoes, murph. but i also like target,

unfortunately. i do think it's filled the gap here as a it broke through 65 and so forth. so i like target here, murph, even though i like your shoes. >> thank you. >> the "wizard of oz" collection. >> that was a good one. >> weiss comes up with a lot of good one-liners. the old saying, the loudest voice in the room is the guy with the least to say. that's you, my friend. >> ooh. >> tell us who you want that debate. tweet us @cnbcfastmoney, and we'll give you the results at the end of the show. coming up, "halftime" is headed to the wide world of twitter, from housing and energy, the traders are giving you the plays on the stocks you asked us about. don't go anywhere. building animatronics is all about getting things to work together. the timing, the actions, the reactions. everything has to synch up. my expenses are no different. receipt match from american express synchronizes your business expenses. just shoot your business card receipts and they're automatically matched up with the charges

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time for our top three trades. caterpillar moving on the back of the surge of chinese exports in august. this is a move that happened some yesterday. happening again today. >> yes. i am very happy about that move. . >> 87.56 where the day movie ii average is. look at technicals may see buying momentum come in there. i talk about joy global, 200 day moving average approaching quickly there and i think there's more potential upside in joy global than caterpillar. >> even a resident china naysayer steve wise bought stocks with china exposure. >> yeah. >> don't believe in numbers but don't care at this point. >> as long as i have guys like

murphy believing them, i'm in. >> even though the credit bubble is exploding there, it doesn't matter, momentum will continue a little longer. not going to be there forever. it's been a great trade. >> netflix, all-time high. doc, carl icahn told us yesterday he hasn't sold any. >> that's been a very wise move by carl, of course. new all-time high, 308 and change. virtually up against that here. tivo and the -- i'm sorry, virgin media and the fact that this will be available through set top boxes, not just through wi-fi connected tvs in the uk and europe, that's big for them. i think it probably gooses the stock another 10 or 15%. >> all right. and finally microsoft is popping as rumors swirl about who might replace steve balmer as ceo. murph? >> yeah. so microsoft's up almost 2% today on talk that it could be alan malala from ford coming in, mike lowry coming in to run the

company. the key take away 20 of the top shareholders in microsoft got toegs and a few said we want a turnaround special nist here. if you're looking from a value standpoint if you own microsoft stock you want a turnaround specialist, someone to come in and get the value out of this company. it's a huge behemoth but huge earning potential. i think it continues to move. >> not so fast, dr. j. traders are quick but not always right. bullish on foot locker, let's listen. >> foot locker, fl, a lot of the out of the money call buying. >> another play on nike, fl. >> you want to make a call for fl again? >> well, i've liked it all year, judge, and if i only would have been smart enough to sell it on the pop but i haven't. unfortunately the stock keeps going 33 to 38 and i haven't been a seller up there at 38. believe me, this time it will pop to 38, i will sell and then it will keep going higher. i like the company but my timing

has not been good this year. >> when you the viewers ask we deliver with trades on four stocks that have lit up our twitter feed. activism blizzard, marathon petrol yon and palo alto. whierhouser, that's you. >> a lot of people look at the way to play housing, a read to collect the dividend. i don't like it for either one of those. i like more growth out of the housing. it's not a name i would buy at this level. >> doc, acty vision? >> acty vision had a big drop in earnings on the latest cycle. bely it's been out -- obviously it's been outperforming electronic arts and the xbox and playstation, new iterations coming out this fall. i think that's a propeller higher for both of these stocks even though acty vision is not looking so good right here. >> marathon? >> i'm not big in the energy space right now. i think there's vulnerability there as the syrian tensions ease. if i were to own a stock it

would be an energy stock that's a bigger yield which there are plenty more than marathon. >> palo alto to. >> quarter looks better than we thought. 2014. a name wall street has loved in the past. a name i have loved in the past. in a few minutes i will tell you how to trade it. >> final trades up next and find out who you think won our debate when we come back.

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all right. the people have spoken and they said you did, that wise, won the debate on target. >> first time for everything. >> like 12-0-2 against wise or something like that. >> at least. >> give me a final trade, steve. >> my final trade is tbf which is short. u.s. treasuries i like that. a great trade. >> murph? >> gnw. >> i liked yesterday's price action in palo alto networks buying it, using yesterday's low as my stock. >> you, dr. j?

i like oil service name cameron international cam, buying a lot of upside call. >> that does it for us. don't forget more "fast" at 5:00 and coming up in a matter of moments apple's big unveil. we're all over that live. for the moment "power lunch" begins right now. >> scott, thank you very much. this is an hour of power filled with breaking news start to finish. the big story, of course, as scott mentioned, the apple announcement, widely reported, sue, that the company will unveil two new iphones. >> and the stock in particular needs something to juice it. it's down 25% in a year. it's down 5% year to date and it's down in today's trading session. right now it is down better than $4 on the trading day to 501, but above the 500 mark. cnbc's research team has found on most major apple product announcement days the stock falls, but the shares go positive both one week and